Energy giant ScottishPower has been penalised to the tune of £8.5 million after the industry regulator found failings in its doorstep sales procedures.
Ofgem said the group, which stopped doorstep sales in 2011, had failed to adequately train and monitor its doorstep and telesales agents, resulting in “misleading information being provided to customers during sales approaches”.
ScottishPower has agreed with the regulator to spend £7.5m on measures to help vulnerable customers, and establish a £1m customer compensation fund.
Neil Clitheroe, ScottishPower’s head of retail and generation, said the firm would be writing to all affected customers regarding compensation.
He added: “We accept Ofgem’s findings and we apologise unreservedly to those customers affected.
“This arose as a result of new regulations which were introduced in 2009. I am sorry to say that we didn’t implement these properly at that time. However, I am pleased that Ofgem has made it clear that they found no evidence of a strategy by ScottishPower to deliberately mis-sell to customers.”
Today’s penalty follows the record £10.5m fine handed down to rival SSE in April for “prolonged and extensive” mis-selling.
Ofgem’s senior partner in charge of enforcement, Sarah Harrison, said: “Today’s announcement is a clear signal to energy suppliers of the consequences of breaching licence obligations and of the importance of taking action to put things right for consumers when they go wrong.”